H.C. Wainwright maintains buy rating on Zentalis stock after ASCO update

On Monday, H.C. Wainwright analysts reaffirmed their Buy rating and $10.00 price target for Zentalis Pharmaceuticals (NASDAQ:ZNTL), suggesting significant upside from the current price of $1.21. Despite the stock’s challenging performance, falling nearly 90% over the past year, InvestingPro data shows multiple analysts maintaining optimistic forecasts. This decision follows the company’s presentation at the 2025 ASCO Annual Meeting, where it showcased a Phase 1 dose-escalation study evaluating the safety and preliminary efficacy of azenosertib, a selective WEE1 inhibitor, in combination with encorafenib and cetuximab.

The study focused on patients with previously treated BRAF V600E-mutant metastatic colorectal cancer. With a market capitalization of $87 million and a strong liquidity position - holding more cash than debt on its balance sheet - Zentalis appears positioned to continue its clinical development programs. Analysts noted that the Phase 3 BREAKWATER study has already generated significant enthusiasm for the combination of encorafenib, cetuximab, and mFOLFOX6 in a similar patient group. The new findings from the Phase 1 study provide further evidence of azenosertib’s tolerability in triplet regimens and suggest potential synergies with other agents.

Data was collected from 46 patients across various dose cohorts, ranging from azenosertib 60 mg to 300 mg daily, and stratified by prior BRAF inhibitor exposure. The triplet therapy was generally well tolerated, with grade ≥3 treatment-related adverse events occurring in 52% of patients, including nausea, diarrhea, anemia, and fatigue. Importantly, no dose-limiting toxicities were observed at the recommended Phase 2 dose of 240 mg.

H.C. Wainwright analysts emphasized the study’s role in demonstrating early proof-of-concept for the combinability of azenosertib with other agents, leaving room for potential future synergies. They reiterated their Buy rating and maintained the $10.00 price target for Zentalis Pharmaceuticals.

In other recent news, Zentalis Pharmaceuticals has been actively engaging in significant developments within the cancer research field. The company shared insights at the 2025 American Association for Cancer Research Annual Meeting, presenting advancements in cancer treatment research, particularly focusing on their investigational WEE1 kinase inhibitor, azenosertib. This investigational drug showed promising results in targeting specific genetic mutations in cancer cells, as well as demonstrating broad antitumor activity across various solid tumors. Analyst firms have taken note, with Stifel maintaining a Buy rating on Zentalis and setting a price target of $9.00. Stifel highlighted Zentalis’s progress in azenosertib’s phase 1b data for platinum-resistant ovarian cancer patients and noted the company’s substantial cash reserves of $371 million. Meanwhile, H.C. Wainwright reaffirmed its Buy rating with a $10.00 price target, citing the drug’s effectiveness in the DENALI Phase 2 trial for ovarian cancer. The trial results indicated an objective response rate of 34.9% in Cyclin E1+ tumors, surpassing historical chemotherapy benchmarks. These developments underscore Zentalis’s commitment to advancing cancer therapies and its potential impact on the treatment landscape.

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